In an effort to assert Paris' role as a hub for artificial intelligence (AI) innovation, France will be hosting the “Viva Technology” conference this week. The conference, attended by tech executives and political figures, aims to tackle key questions surrounding AI, including its potential impact on upcoming elections and climate change. The event has garnered support from major players in the industry, such as former U.S. secretary of state John Kerry, EU industrial chief Thierry Breton, and ex-Google boss Eric Schmidt.
Amidst these discussions, Paris-based LVMH, the world’s largest luxury group, has also thrown its weight behind VivaTech as a founding partner. Bernard Arnault, Chairman and CEO of LVMH and one of the world’s wealthiest individuals, is expected to draw crowds during his visit to the event. The group’s stand will showcase new tech from prestigious brands like Louis Vuitton, Tag Heuer, and Dior.
However, the significance of this conference goes beyond showcasing the latest advancements in AI. France has been actively working to position itself as a leader in generative AI, the technology behind tools like OpenAI’s ChatGPT. Over the past 18 months, President Emmanuel Macron has drawn investments from big tech companies like Amazon and Microsoft, while also pushing for the integration of capital markets across the European Union.
France’s ambitions as an AI leader are supported by its status as a global capital of luxury. Organizers of VivaTech highlight how the association with luxury and innovation can attract investments in technology. François Bitouzet, the managing director of VivaTech, explains, “Luxury is always linked with innovation, because your aim is always to provide something no one else can provide.” While Paris currently ranks second to London in terms of tech investment, there are signs of change, with a dynamic ecosystem and increased investment in recent years.
In fact, French tech companies received close to $8 billion in investments in 2023, surpassing third-place Germany ($7 billion) but still trailing behind the UK ($13 billion). Atomico, a venture capital firm, reported that the number of tech startups founded in France in 2023 exceeded that of any other country in Europe, with nearly 3,000 new companies established. While a similar number of startups emerged in Britain over the same period, the annual rate of new company formations there has been declining since 2020.
A significant aspect of France’s rise in the AI landscape is the emergence of successful Paris-based companies. Over the past 18 months, some of the most lucrative fundraising rounds have been raised by these companies. Many of these buzz-worthy startups were founded by former researchers from industry giants like Google DeepMind.
Julien Launay, who left his position at Hugging Face, a leading French-American AI firm, to launch his own startup Adaptive ML, highlights the talent pool and potential for growth in France. Adaptive ML helps companies build their own generative AI tools and managed to raise $20 million in funding within six months. Launay emphasizes the importance of securing French investors, as while France has a wealth of talent and startups, it currently lags behind the United States in terms of available funds.
European startups have historically faced challenges in raising significant capital from local investors due to the complex and fragmented nature of capital markets across the EU. Compliance costs and less liquid markets make it difficult for these startups to secure the funding they need to thrive. However, there is a growing sense of optimism as more companies find funding and are able to attract talent to build successful enterprises in Europe.
As Paris cements its position as an AI hub and continues to attract investments, it is clear that the city’s ambition and dynamism are key drivers in its ascent. The Viva Technology conference serves as a platform to showcase French innovation, but more importantly, it symbolizes the country’s determination to lead the way in AI and shape the future of technological advancements.
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